Aradigm Corporation (NASDAQ:ARDM) Files An 8-K Other Events
Item 8.01 Other Events.
On June 12, 2020, the Bankruptcy Court entered an order confirming the Debtors Modified Combined Chapter 11 Plan and Disclosure Statement (the Plan) filed by Aradigm Corporation (the Company). The Effective Date (the Effective Date ) of the Plan will be June 29, 2020. The Company will be dissolved and its stock cancelled as of the Effective Date after market close and the Companys assets will be contributed to a Liquidating Trust.
As described in the Forms 8K filed by the Company on April 3, 2020 and on April 13, 2020, the Company sold its assets and intellectual property that pertain to Lipoquin, Free Ciprofloxacin, Apulmiq and any derivatives thereof to Grifols S.A. for cash, the right to receive milestone payments on the occurrence of certain events and the right to receive royalty payments based on future sales of the product. The Combined Plan provides that on the Effective Date of the Plan these assets (less amounts paid for certain expenses), as well as the Companys other assets, will be contributed to a Liquidating Trust for the benefit of the Companys creditors and shareholders. As mentioned above, the Companys stock will be cancelled as of the Effective Date (June 29) after market close and the Company will be dissolved. Creditors and shareholders will receive a pro rata interest in the Liquidating Trust. The Liquidating Trust will satisfy the claims of the Companys priority creditors and will collect any milestone payments and royalty payments that are earned and distribute the proceeds to the Companys creditors. After creditors are paid in full with interest, the Liquidating Trust will distribute any remaining proceeds that are received to the Companys shareholders.
The address of the Liquidating Trust from and after June 29, 2020 will be Aradigm Corporation Liquidating Trust, c/o Susan L. Uecker, Liquidating Trustee, Uecker & Associates, Inc., 1613 Lyon Street, Suite A, San Francisco, CA 94115.
The Plan is on file with the Bankruptcy Court. This description of the Combined Plan is qualified in its entirety by the terms of the Plan.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| 99.1 | Press Release of Aradigm Corporation dated June 15, 2020 |